Whats Worse Tesla at 1 Trillion or Bitcoin at 50,000

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Charlie Munger, vice chairman of Berkshire Hathaway and Warren Buffetts longtime business partner, on Wednesday dismissed the rocketing share price of Tesla and the recent bitcoin frenzy. During an interview at the Daily Journals annual shareholders meeting, Munger was asked whether he thought it was crazier for bitcoin to hit 50,000 or for Tesla to reach a 1 trillion fully diluted enterprise value, he said Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, I cant decide the order of precedency between a flea and a louse, and I feel the same way about those choices. I dont know which is worse.

Shares of Tesla rocketed 743 last year, though its currently down about 3 for 2021. Its market cap is about 689 billion. Bitcoin continued to surge to more than 50,000 over the past week after Tesla announced it bought 1.5 billion worth of the cryptocurrency.

Munger was also asked what the biggest threat to banking is, and whether it was bitcoin or digital wallets like Apple Pay and Square. I dont think I know what the future of banking is, and I dont think I know how the payment system will evolve, he said. I do think that a properly run bank is a great contributor to civilization and that the central banks of the world like controlling their own banking system and their own money supplies. So I dont think bitcoin is going to end up the medium of exchange for the world. Its too volatile to serve well as a medium of exchange….

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